Tesla sales fell slightly in 2024, the first annual decline in the company’s history, as rivals in China, Europe and the United States introduced dozens of competing electric models, giving buyers more choice.

The company said on Thursday that it delivered 1,789,226 vehicles worldwide during the year, a slight decline from 1,808,581 in 2023. During the last three months of 2024, Tesla delivered 495,570 vehicles, up from 484,507 in the last quarter of 2023.

The fourth-quarter deliveries were the best ever for Tesla, according to the company, but were not enough to make up for sluggish sales earlier in the year.

Tesla shares, which have been buoyant in recent months, fell 6 percent on Thursday.

Tesla and its chief executive, Elon Musk, largely created the market for electric vehicles when it began selling the Model 3 sedan in 2017, arguably the first battery-powered car with the price, performance and range to attract large numbers of mainstream buyers. Tesla still accounts for nearly half of all electric cars sold in the United States.

But carmakers like BYD in China, General Motors, Kia-Hyundai, Volkswagen and BMW have challenged Tesla’s dominance, often with models that have newer designs and lower prices.

BYD, which has nearly caught up to Tesla as the world leader in sales of purely battery-powered cars, sold 1.76 million electric vehicles in 2024, the company said on Wednesday, an increase from 1.6 million the year before. Unlike Tesla, BYD also sells plug-in hybrids that use gasoline and electricity, which have become popular in China. Last year, the company sold 2.49 million hybrids, a huge jump from 1.44 million in 2023.

Annual electric vehicle sales